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Incubation Push or Business Pull? Investigating the Geography of US Business Incubators

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Author Info

  • Haifeng Qian

    ()
    (Maxine Goodman Levin College of Urban Affairs, Cleveland State University)

  • Kingsley Haynes

    ()
    (School of Public Policy, George Mason University)

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    Abstract

    The primary purposes of this paper are to present the geographic distribution of US business incubators and to explore geographically bounded factors that influence the location of business incubators. Our data show that US business incubators are unevenly distributed across the urban/rural division, states, as well as counties. Factor analysis identifies three common factors from 27 demographic, social, and economic variables drawn from publicly available data at the county level. These factors include agglomeration, welfare, and business/entrepreneurship. The results of binominal logistic regressions suggest that incubators are more likely to be found in counties with high levels of agglomeration but low levels of existing business development. Our findings support the “incubation push” model over the “business pull” model on the location of business incubators, which reflects the policy strategy of incubator creation.

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    File URL: http://rri.wvu.edu/wp-content/uploads/2012/11/Qian-Haynes-The-Geography-of-US-Business-Incubators-FINAL.pdf
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    Bibliographic Info

    Paper provided by Regional Research Institute, West Virginia University in its series Working Papers with number 201005.

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    Length: 24 pages
    Date of creation: 2010
    Date of revision:
    Handle: RePEc:rri:wpaper:201005

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    Related research

    Keywords: business incubators; regional growth; regional development; regression;

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    References

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    1. Sam Youl Lee & Richard Florida & Zoltan Acs, 2004. "Creativity and Entrepreneurship: A Regional Analysis of New Firm Formation," Regional Studies, Taylor & Francis Journals, vol. 38(8), pages 879-891.
    2. David B. Audretsch, 1995. "Innovation and Industry Evolution," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262011468, December.
    3. Acs, Zoltan & Audrestch, David & Braunerhjelm, Pontus & Carlsson, Bo, 2007. "The Knowledge Spillover Theory of Entrepreneurship," Working Paper Series in Economics and Institutions of Innovation 77, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    4. Feldman, Maryann P, 2001. "The Entrepreneurial Event Revisited: Firm Formation in a Regional Context," Industrial and Corporate Change, Oxford University Press, vol. 10(4), pages 861-91, December.
    5. Timothy J. Bartik, . "Small Business Start-Ups in the United States: Estimates of the Effects of Characteristics of States," Upjohn Working Papers and Journal Articles tjb1989sej, W.E. Upjohn Institute for Employment Research.
    6. Peter Bearse, 1998. "A Question of Evaluation: NBIA's Impact Assessment of Business Incubators," Economic Development Quarterly, , vol. 12(4), pages 322-333, November.
    7. Rothaermel, Frank T. & Thursby, Marie, 2005. "Incubator firm failure or graduation?: The role of university linkages," Research Policy, Elsevier, vol. 34(7), pages 1076-1090, September.
    8. Audretsch, David B. & Lehmann, Erik E., 2005. "Does the Knowledge Spillover Theory of Entrepreneurship hold for regions?," Research Policy, Elsevier, vol. 34(8), pages 1191-1202, October.
    9. Rudy Aernoudt, 2004. "Incubators: Tool for Entrepreneurship?," Small Business Economics, Springer, vol. 23(2), pages 127-135, 09.
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